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A bond that pays interest semiannually has a price of $941.35 and a semiannual coupon payment of $26.00. If the par value is $1,000, what is the current yield
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28 votes
28 votes
A bond that pays interest semiannually has a price of $941.35 and a semiannual coupon payment of $26.00. If the par value is $1,000, what is the current yield

User Mazze
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1 Answer

13 votes
13 votes

Answer:

5.52%

Step-by-step explanation:

Calculation to determine the current yield

Current yield = ($26.00 × 2)/$941.35

Current yield=$52/$941.35

Current yield= .0552*100

Current yield= 5.52%

Therefore the Current yield is 5.52%

User Abdullah AlHazmy
by
2.9k points
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